Law Firm Purchased My Debt and Will File a Lawsuit Against Me

Lwms · #1 05-18-2009, 01:36 PM

My question involves collection proceedings in the State of: California, but I opened the card in Texas.

Hello,
I recently received a letter from the Law Office of Richard Hudson Share stating that they purchased my debt from Chase bank and are demanding that I pay on a card that has been in default for over 3 years now. When I decided to stop making payments on this card, I was just out of college and was advised that if I stopped making payments, this debt would disappear after 7 years.

It now seems that this is not an option and I am seeking advise. I have to respond by May 25th or they will file the lawsuit against me.

Thanks!

jk · #2 05-18-2009, 03:09 PM

um, pay the bill if it is legit maybe?

Texas has a 4 year statute of limitations so as long as it has been less than 4 years, they can sue, and win a judgment against you.

I have not checked to see if Texas has a tolling statute that might apply since you are now out of the original state. If there is one, the SoL may very well not have run due to that.

divemedic · #3 05-18-2009, 04:15 PM

When did the law firm contact you? If within the last 30 days, send them a dispute by certified mail. Then the law states that they must send proof of the debt they are collecting, and cannot continue collection efforts until they do.

The debt WILL disappear from your credit report within 7 years, unless they get a judgment.

Exactly when did you last pay on this card? The more precise you can be with that, the better.

Lwms · #4 05-18-2009, 05:58 PM

The law firm contacted me on April 20 via a letter and states that I must contact them by May 25, either to arrange a payment or send a dispute. I closed this account 3 years ago after I moved to California, but it was originally opened in Texas.

The amount they are claiming I owe, even after interest, doesn't sound right (way too much). I don't have my last statement with me, so I don't know the exact date of last payment.

Given all of this, it would seem that the best thing for me to do is to send a letter of dispute via certified mail until I can collect all the necessary info?!

Thanks again for your help.

jk · #5 05-18-2009, 06:01 PM

you need to get it in the mail ASAP. You have 30 days to dispute for it to be effective in delaying collections. That info should have been included in the letter you recieved.

divemedic · #6 05-18-2009, 06:02 PM

Send a dispute now. You only have 30 days from the initial letter to send your dispute.

jk · #7 05-18-2009, 06:04 PM

since you have played with this much more than I have divemedic, would the 30 days be to postmark or receipt of the dispute?

divemedic · #8 05-19-2009, 05:55 AM

There are a few cases that have addressed this issue. You have 30 days to dispute from the day you receive the letter. The law allows 5 days of transit time, so the letter sent to you on April 20 is presumed to have arrived on April 25.

If you send the dispute by May 25, you have met the statute. However, I would not push it. Mail one today.